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Inflation is a rise in the general level of prices of goods and services in an economy over a period of time. The term "inflation" once referred to increases in the money supply (monetary inflation); however, economic debates about the relationship between money supply and price levels have led to its primary use today in describing price inflation. Inflation can also be described as a decline in the real value of money - a loss of purchasing power in the medium of exchange which is also the monetary unit of account. When the general price level rises, each unit of currency buys fewer goods and services. A chief measure of general price-level inflation is the general inflation rate, which is the percentage change in a general price index, normally the Consumer Price Index, over time.

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Leasing or Contract Hire is inflation friendly. As the costs go up over five years, you still pay the same rate as when you began the lease, therefore making your dollar stretch farther.

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Books


The New Keynesian framework has emerged as the workhorse for the analysis of monetary policy and its implications for inflation, economic fluctuations, and welfare. It is the backbone of the new generation of medium-scale models under development at major central banks and international policy institutions, and provides the theoretical underpinnings of the inflation stability-oriented strategies adopted by most central banks throughout the industrialized world. This graduate-level textbook provides an introduction to the New Keynesian framework and its applications to monetary policy.

Using a canonical version of the New Keynesian model as a reference framework, Jordi Galí explores issues pertaining to the design of monetary policy, including the determination of the optimal monetary policy and the desirability of simple policy rules. He analyzes several extensions of the baseline model, allowing for cost-push shocks, nominal wage rigidities, and open economy factors. In each case, the implications for monetary policy are addressed, with a special emphasis on the desirability of inflation targeting policies.

  • The most up-to-date and accessible introduction to the New Keynesian framework available
  • Uses a single benchmark model throughout
  • Concise and easy to use
  • Includes exercises
  • An ideal resource for graduate students, researchers, and market analysts


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Inflated Prices News

02/08/2010 12:29 PM
Teva settle drug price inflation lawsuit - Drug Store News (blog)

Teva settle drug price inflation lawsuit
Drug Store News (blog)
8) Teva Pharmaceutical Industries has reached a settlement in a case alleging that governments had to pay inflated prices for its drugs, the world's largest ...

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02/05/2010 08:55 PM
Monopoly Gets Modern, Featuring a Round Board, Debit Cards & Inflated Prices ... - Cleveland Leader

Cleveland Leader

Monopoly Gets Modern, Featuring a Round Board, Debit Cards & Inflated Prices ...
Cleveland Leader
Prices in Monopoly land have also gone up, reflecting inflation and the passage of 75 years. Instead of collecting $200 as you pass go, you'll now collect ...

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02/08/2010 02:12 PM
Embrace the Spirit of Valentine's Day Without Breaking The Bank - Technorati (blog)

Technorati (blog)

Embrace the Spirit of Valentine's Day Without Breaking The Bank
Technorati (blog)
During the coming week, approximately 200 million red roses will be bought at holiday-inflated prices to represent a symbolic gift of love on Valentine's ...

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02/08/2010 03:11 PM
Sarasota: Mortgage Fraud Capital of America? - WUSF 89.7 News

Sarasota: Mortgage Fraud Capital of America?
WUSF 89.7 News
Adams allegedly used other people's names -- associates, friends, and even his mother – to buy property from him at inflated prices. ...
FBI BUILDS ITS CASE IN FLIPPING SCHEMES FBI builds its case in flipping schemesSarasota Herald-Tribune

all 3 news articles »
02/07/2010 10:44 PM
Greenspan Outright Exposes His Stock-Pumping Bias In An Interview - The Business Insider

The Business Insider

Greenspan Outright Exposes His Stock-Pumping Bias In An Interview
The Business Insider
But as the housing market has shown, artificially inflated prices that depend on borrowed money can lead to economic disaster when the borrowing stops and ...

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02/08/2010 01:20 PM
Fiction Lovers: A Kindle, an iPad and a Hard Place - Death + Taxes Magazine

Death + Taxes Magazine

Fiction Lovers: A Kindle, an iPad and a Hard Place
Death + Taxes Magazine
But without the Kindle to keep prices in check, it will be difficult to ensure the agency model doesn't get inflated, as well as ending a new era of self ...

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02/08/2010 06:25 PM
No Exit in Sight for US As Fannie, Freddie Flail - Wall Street Journal

No Exit in Sight for US As Fannie, Freddie Flail
Wall Street Journal
Fannie and Freddie, for their part, remain at the core of a housing-finance system that inflated a dangerous housing bubble. After prices collapsed, sending ...

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02/08/2010 02:13 PM
Oregon's 2009 Agricultural Sales Post Biggest Percentage Fall In At Least 33 Years - CattleNetwork.com

Oregon's 2009 Agricultural Sales Post Biggest Percentage Fall In At Least 33 Years
CattleNetwork.com
Shortages in supply in 2007 and 2008 had inflated prices, he said. He's not upbeat about this year. "Although planted acreage of US winter wheat was down 14 ...

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02/05/2010 12:16 PM
Amazon eBook prices look set to skyrocket - The Tech Herald

The Tech Herald

Amazon eBook prices look set to skyrocket
The Tech Herald
... inflated price rule following news that yet another prominent publishing house has revealed a desire to set its own prices via the online retailer. ...

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02/08/2010 05:01 PM
Coughlin Stoia Geller Rudman & Robbins LLP Files Class Action Suit Against ... - MarketWatch

Coughlin Stoia Geller Rudman & Robbins LLP Files Class Action Suit Against ...
MarketWatch
As a result of defendants' false statements, Toyota's securities traded at artificially inflated prices during the Class Period, reaching a high of $91.78 ...

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